UBS said it is in advanced talks with the US department of justice (DOJ) to settle allegations of foreign exchange market rigging, as Switzerland's biggest bank by assets posted forecast-beating first-quarter earnings.

“Discussions with DOJ have continued and are at an advanced stage, although no agreement has been reached with the DOJ on the form of a resolution,” Zurich-based UBS said in its quarterly report published on Tuesday.

The DOJ’s investigation centres on how traders allegedly manipulated the $5 trillion a day foreign exchange market. People familiar with the matter told Reuters last week the DOJ and five major banks including UBS were on course to reach multi-billion dollar agreements as soon as the second half of May.

In quarterly earnings, UBS said net profit for the first three months of 2015 stood at 1.977 billion Swiss francs (€1.9 billion), an 88 per cent year-on-year rise in first-quarter net profit and well above the 1.1 billion francs analysts had forecast.

Figures were boosted by the highest profits from the bank’s wealth management businesses since 2008.

UBS’s wealth management arm won 19 billion francs in net new money, a key indicator for future revenue.

Analysts had forecast net new funds of 13.4 billion francs. The bank said it expects its wealth management businesses to continue to bring in net new money in the second quarter.

Reuters